Gildan CEO Glenn Chamandy told a news conference the five-month battle between shareholders and the board had cost the company millions of dollars.
Chamandy was reinstated as CEO in May after his replacement Vince Tyra resigned, along with the company’s board of directors after shareholders “overwhelmingly” voted in favour of a plan to replace them, which was led by 5% shareholder Browning West.
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In a statement released when he was named as CEO, Chamandy said: “I’m extremely excited to return as Gildan’s CEO and am gratified for the incredible support I have received from both shareholders and employees over the past six months.
“I’m proud of our dedicated employees for their hard work and focus through a tumultuous period. The resilience of the team and the high quality of our newly seated board give me great confidence that Gildan’s best days are yet to come.”
In an interview with Bloomberg on 28 May, Chamandy shared the dispute with Gildan’s board had been “very difficult”.
He said: “I would say I was quite saddened by the way the board handled the situation. It was tough on me personally. It was tough on my family. I think it was difficult for employees in the company. And I think it was exhausting for shareholders.”
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By GlobalDataBrowning West has said it is eager to begin working towards its common goal of “delivering enhanced shareholder value” after Chamandy’s reinstatement.
In May 2024, Gildan shared “solid” results for the quarter ending 31 March 2024, with shipments slightly ahead of expectations and sales of activewear up 1%, despite the ongoing dispute.
Previous battles between apparel company boards and CEOs have proved costly. In 2017, apparel retailer J.Crew experienced a leadership crisis when its long time CEO, Mickey Drexler, stepped down amid declining sales and strategic disagreements. The transition to a new CEO, Jim Brett, was initially welcomed, but disputes over strategic direction soon emerged.
Brett’s sudden departure in 2018, after just over a year in the role, was attributed to clashes with the board over the company’s direction. This turmoil exacerbated J.Crew’s financial struggles and led to significant organisational instability.
